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Exploring the Effects of Green Portfolio on REITs’ Return Performance in South Africa

Authors :
Koech Cheruiyot
Kingsley Martell
Kyle Motani
Source :
Journal of Sustainable Real Estate, Vol 15, Iss 1 (2023)
Publication Year :
2023
Publisher :
Taylor & Francis Group, 2023.

Abstract

AbstractThis paper investigates the extent of “greenness” of South African REITs; and whether green investments have any significant effects on the REITs return performance at the aggregate level. It used publicly-accessible green buildings and financial data obtained from the Green Building Council of South Africa’s (GBCSA) website and financial reports of 27 REITs that operate in South Africa, respectively. With only 11 REITs having green buildings in their portfolios, the results show phenomenal growth in the cumulative amount of green Gross Lettable Area (GLA) in under a decade – from a paltry 38,133 square metres of GLA in 2013, to over two million square metres of GLA in 2021. From panel analyses, consistent regression results show that green variables were positive and statistically significant across most of the estimated models. The statistically significant results imply that increased investments in green infrastructures have positive effects on REITs’ return performances. The study has implications for research and practice as far as the investments by REITs in green buildings in South Africa is concerned.

Details

Language :
English
ISSN :
19498276 and 19498284
Volume :
15
Issue :
1
Database :
Directory of Open Access Journals
Journal :
Journal of Sustainable Real Estate
Publication Type :
Academic Journal
Accession number :
edsdoj.f05fdaa55cb4add8c7e8460fa4209f0
Document Type :
article
Full Text :
https://doi.org/10.1080/19498276.2023.2268959